Family-run restaurant struggling

Couple who lost house, store try to stay afloat as diners dwindle.

Couple who lost house, store try to stay afloat as diners dwindle.

October 24, 2008|ALICIA GALLEGOS Tribune Staff Writer

MISHAWAKA -- The Mustafas are no strangers to loss. Because of back taxes, they say their house was recently sold in an auction. Too few customers then resulted in the closure of their grocery store. Now the couple are holding tightly to their remaining lifeline: a restaurant that could also be slipping away. "We are hurting for customers," says Sojud Mustafa, part owner of Ali Baba's Palace with husband Rushdy Mustafa. "People everywhere are going to franchise restaurants instead of family-owned." "It's a lot of contributing factors," Rushdy Mustafa added during a later interview. "I think a large part of it is the economy." Ali Baba's Palace, 615 W. Edison Road, formerly called Olive Mount Grille, specializes in Mediterranean food and was an endeavor Rushdy started after leaving a career in computers. The owner came to the United States from Israel 25 years ago and graduated from Purdue University, later achieving success in information technology. But Rushdy decided his life needed a change. In less than two years, the Mustafas have been hit with plenty. In addition to their daily restaurant struggles, the Mustafas recently had their restaurant put on probation because of health violations. At a health officer's hearing this week, officials listed violations which included: food items without labeled preparation dates, stacked dishes by dishwasher not washed immediately, improper storage, and unlabeled spray bottles in the kitchen. Mustafa says he feels the infractions were exaggerated and that he has since made the proper corrections. Probation means the restaurant is subject to extra inspections by health officials for a period of six months. During the hearing, the owner told health officials he could not afford to hire any more help. The restaurant has a dishwasher and part-time help on the weekends, Mustafa later explained, but usually it's he and his wife who cook, clean, serve and manage the 5,000-square-foot restaurant. Sojud Mustafa became emotional after the hearing, her eyes filling with tears as she spoke to a reporter about the added blow to the restaurant. "We have been working hard cooking and cleaning," she said. The restaurant has never had any complaints, her husband added, and, in fact, has several regulars who comment on the cozy, familylike environment. But marketing that atmosphere has proved difficult, they say, considering the costs to advertise. Rushdy Mustafa also believes the restaurant name change may have confused customers. Last year, Mustafa was in the hospital with heart problems, and the restaurant had to close for two months, he explained. The owner obtained a partner at the time, who changed the name. The partner later pulled out. Restaurants suffering The Mustafas are far from alone in their restaurant woe. A recent study by the National Restaurants Association found that a record 31 percent of restaurant operators said the economy is the No. 1 challenge facing their businesses, followed by food costs. For the 10th consecutive month, the association's most recent score for restaurant activity remained below 100, meaning the industry is contracting. The performance index measures the health and outlook for the U.S. restaurant industry. Food prices went up by 7.6 percent last year, added Mike Donohue, spokesman for the association, a rise that is well above 8 percent now. Individual commodities such as flour, oil, eggs and cheese are posting even more dramatic gains, according to the restaurant study. "This is a very difficult time for restaurants," Donohue said. "This is all having a tremendous impact on the bottom line." As for the Mustafas, they're not giving up and plan to keep working hard at Ali Baba's. The family also has a year to redeem their recently sold house. Hopefully, the economy will soon change for the better, Rushdy Mustafa says, and with it, his restaurant's future.Staff writer Alicia Gallegos: agallegos@sbtinfo.com (574) 235-6368